President Donald Trump said he is considering a lawsuit against Federal Reserve Chairman Jerome Powell over the renovation of the central bank's headquarters, a project whose cost overruns have been investigated.

In a social media post on Tuesday, Trump again criticized the Fed Chairman for the central bank's decision to keep interest rates steady and repeated his criticism of Powell over the renovation work.

"The damage he's done by being late is incalculable.

Fortunately, the economy is doing so well that we've moved past Powell and the complacent Board," Trump said. "However, I am considering authorizing a major lawsuit against Powell for the terrible, and very incompetent, job he's done in managing the construction of the Fed Building."

White House Press Secretary Karoline Leavitt, when asked if the administration was considering suing the Fed Chairman over the renovation, replied, "That's what the president said." "He's considering a lawsuit," she told reporters at a briefing Tuesday evening, adding that she would not discuss the matter further. "I'll let the president do it himself."

When asked if a lawsuit would resolve the project's issues, Trump trade adviser Peter Navarro, in an interview on Tuesday, replied, "Absolutely."

"I mean, look, it gets your attention. Like, what's he doing there?" Navarro said on Bloomberg Television's Balance of Power, accusing Powell of downplaying the cost of the work. The yield curve steepened after Trump's comments, with the 10-year yield rebounding after Tuesday's consumer price index figures and hitting its highest point of the session.

Data released Tuesday morning showed underlying inflation rose in July, though goods prices rose at a slower pace, easing concerns about tariff-driven price pressures and raising expectations of a Fed rate cut in September.

The renovation has become a flashpoint in Trump's pressure campaign against Powell and the central bank for not lowering borrowing costs, prompting him to visit the construction site last month during a rare presidential visit to Fed headquarters. The visit saw a brief de-escalation of tensions between Trump and Powell, and the president appeared to downplay some of his concerns about the work there.

But criticism resurfaced after Fed officials left interest rates unchanged in July, followed by a turbulent period in which Trump fired the head of the Bureau of Labor Statistics after a report earlier this month showed a weakening US job market. Trump has repeatedly called on Powell to resign. At times, he considered firing him outright before saying he would wait until his term expires to avoid market turmoil.

Treasury Secretary Scott Bessent is seeking a candidate to replace Powell when the chairman's term ends in May, with Trump expected to make an announcement later this fall, according to two administration officials. The president also seized an earlier-than-expected opportunity to influence the central bank last week by appointing Stephen Miran, one of his top economic advisers, to serve as Federal Reserve chairman.

Miran, who will need Senate confirmation, will serve only through Fed Governor Adriana Kugler's term, which ends in January, giving Trump more time to find a permanent replacement. (alg)

Source: Bloomberg